World Platinum Market to End 2020 at Notable Deficit

The total platinum supply is forecast to decline by 18% to 6,738 koz in 2020.

SEATTLE (Scrap Monster): The latest quarterly report published by the World Platinum Investment Council (WPIC) foresees deficit of over 1.2 million ounces for global platinum market during the current year. This is the second straight year of deficit for the metal. The deficit is mainly on account of pandemic-driven mine closures and ongoing disruptions in South African mines.

According to WPIC, the total platinum demand for the year is forecast to be 7,940 koz, lower by 5% from 2019. The demand from automotive segment is likely to drop by 464 koz. The jewellery and industrial segments too are likely to see weakness in demand by 274 koz and 79 koz respectively. On the other hand, investment demand is expected to touch record high of 1,659 koz, up by 32% from the prior year.

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The total platinum supply is forecast to decline by 18% to 6,738 koz in 2020. The refined production is expected to witness a decline by 22%, whereas the recycling supply may fall short by 10%.

The initial forecasts for 2021 shows 17% jump in total platinum supply levels from 2020 levels, driven by 21% rise in refined production and 8% rebound in recycling. The global platinum market is likely to report third consecutive deficit market in 2021. However, the deficit levels are expected to shrink to 224 koz.

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